David Roy Potts, 27, was arrested in the early hours of Monday morning after police allegedly found cash and methamphetamine on him at the Novotel Wollongong car park.

After checking his phone, police allege the Blair Athol man also supplied a large quantity of drugs to associates.

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Documents tendered to Wollongong Local Court on Monday said police stopped Potts, who works as a tiler, in the car park about 12am after observing him driving over the 50km/h speed limit and swerving around speed humps along Cliff Road.

Following checks on their system, the officers discovered Potts was wanted on two outstanding warrants.

Police allege the officers found a large amount of cash, totalling $10,850 in a black satchel bag, a glass pipe commonly used to smoke the drug 'ice', as well as a clear resealable bag containing a glass-shard-like substance and cannabis.

Potts denied the cash was from supplying drugs, instead claiming he received $4000 from his brother, had won $3000 on the pokies and his friend had given him the rest, however he did not have any proof.

When questioned about the substance, Potts allegedly told police, "yeah it's mine, its gas (speed). I'm mad for it. It's all for personal use", adding he paid more than $2000 for it.

Police searched his phone and found text and Facebook messages with contacts asking him for "green", "bud", "smoke" and "puff" in varying quantities with Potts allegedly responding with prices.

During a further search of the car, police allegedly found more resealable bags containing a white powder and more glass-shard-like substance.

Potts was taken to the Wollongong Police Station where the substance, which police allege is meth, was weighed and totalled 27 grams.

Police also allege due to the messages that Potts was involved in supplying drugs and the cash was from the sale of the drugs.

He was charged with supplying prohibited drugs, possessing prohibited drugs and goods in custody suspected of being stolen.

In court on Monday, police prosecutor Leah Argent opposed bail noting the case against Potts was "strong", adding a custodial sentence was likely if he was convicted given his lengthy criminal record.

Defence lawyer Elizabeth Parkes said Potts had an explanation for why he had the cash.

Registrar Peter Ritchie granted Potts bail as there was no certainty he would go to jail if convicted despite the amount of drugs being well in excess of a trafficable quantity.

As part of his bail conditions, Potts must live at his Blair Athol home with his parents, report to police daily and he must not drink alcohol or take illicit drugs.

Potts would also have to forfeit $5000 and his father $3000 if he did not attend court.

The case was adjourned to April 13.

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